Law: Income Tax Ordinance, 1979

Section: 63

(a) Income Tax Ordinance (XXXI of 1979)----S.63---Best assessment---Estimate of receipts---Verifiability--¬Assessing Officer although admitted to have verified bulk of receipts even then he estimated receipts more than declared by assessee---Tribunal in view of facts of case, reduced receipts estimated by Assessing Officer. (b) Income-tax--- ----Gross profit rate---G.P. rate applied by assessee being reasonable was maintained. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.63---Best assessment---Gross profit rate ---Fluctuation--¬Fluctuation in G.P. rate from year to year was, held, to be a natural phenomenon. I.T.As. Nos.987/LB/1984-85 and 1717/LB/1997-88 ref. ORDER AHSAN ALAM (ACCOUNTANT MEMBER).---The appellant is an individual who derived income from motor workshop and also from the sale of spare parts on the basis of commission. The assessee has come in appeal for the charge years 1990-91, 1991-92, 1992-93, 1993-94 and 1994-95. Both the parties are present and have been heard. The appeals are being decided as under: Assessment Year 1990-91. 2. In view of the fact that the case has always been processed under Self-Assessment Scheme, the Department, therefore, does not take it as the history of the case. As far as the addition and expenses are concerned, there is merit in the grounds of appeal of the assessee. The gross receipts were estimated at Rs.3,85,000 against the declared at Rs.3,52,354. In fact the assessee had declared his gross receipts comprising of income from vehicle repair, commission from sale of machinery and commission from sale of spare parts. Commission was received from various mills and proper documentation, were produced before us. Keeping in view the arguments of the learned A.R. and the record available with us and the documents produced before us the gross receipts are reduced to Rs.3,70,000 against the estimate at Rs.3,85,000 by the Assessing Officer. 3. The Assessing Officer had allowed expenses at Rs.2, 70,000. These expenses are fixed at Rs.2,80,000. Assessment year 1991-92. 4. The Assessing Officer has himself admitted that receipts to the tune of Rs.2, 56,400 put of Rs.3,11,729 are verifiable. The remaining receipts of…

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